Determining the Cost of a Forklift Accident

Determining the cost of a forklift accident is far more complex than calculating the cost of safety. The cost of safety is straightforward as you are adding up the totals for costs such as forklift training programs, research and development, PPE equipment, salaries and insurance costs. What do you need to think about when it comes to the cost of a forklift accident?

What is the Cost of a Forklift Accident?

The cost of a forklift accident is more involved, because you need to take into consideration known and unknown costs. Why? Every injury related forklift accident is different. Different circumstances, environment, events that led up to the accident, who will be involved, what type of injury and more. Then there is a cost associated with how it affects others within the facility. Will it affect their morale, trust in management, and will it be more difficult to retain workers.

Costs that Can Be Quantified

To help you quantify the costs, OSHA has developed a worksheet that can help estimate costs of injuries and illnesses and the estimated impact it can have on a company’s profitability. The online tool which is part of the OSHA Safety Pays programs, can give you an estimate of the indirect and direct costs of an injury. It will also give you an idea of how much of your company’s revenue will be used to cover the cost of the losses. Not pretty.

OSHA Fines

As we just noted, these fines can add up quickly. According to Insurance Magazine, there was a forklift accident at a Wisconsin food plant where a veteran worker was struck by a forklift while labeling a pallet and was seriously injured. They were cited with a $177k fine. However, OSHA didn’t stop there.

While OSHA was on site, the OSHA inspector cited the food company for two repeat and three serious safety violations. One was for forklift training and the other for machine safety procedures. Start adding these up, and the company is paying out some steep penalties.

Safety Costs

SIERA.AI knows that you want to do the best for your company, but you’re restricted with budgets. Let’s go through a couple of opportunities to help you control your costs.

1. Forklift Safety Score Calculator: SIERA.AI has developed a safety score calculator that will only take you a couple minutes to complete. There are 5 questions that will help you identify where the safety gaps reside with your forklifts and operators.

Forklift Safety Topics: Tailor your workplace safety topics that’s reflective of your environment. We can help you get started. Last week, we released an article specifically geared on forklift safety topics. Take a quick look by clicking on the link.

What’s Next?

Finding out the cost of a forklift accident may take a little time, but it certainly can be worth the time and investment in order to control the costs and potential accidents. Then, take a look at the SIERA.AI forklift safety solutions that can help reach a zero-accident facility. Begin by looking at the S2 Digital Inspection with Impact Detection. This will help you get some valuable insights into your facility while helping you stay OSHA compliant with your forklifts. When you’re ready, go to the S3 Pedestrian Detection. This forklift safety solution knows the difference between a pedestrian and an object. This is the only solution out there that can tell the difference.